201808 ckp company presentation 2q2018

Company Presentation

CK Power Public Company Limited

August 2018

Disclaimer

The information contained in this presentation is intended solely for your personal reference only. This presentation is not intended to provide the basis for any investment decision, nor to substitute your own analysis and investigation, and should not be considered as a recommendation to any recipient of this presentation. Some statements made in this presentation are projections and forward-looking statements, with respect to CKP’s corporate plans, strategies and beliefs and other statements that are not historica l facts and are subject to various risks and uncertainties. These statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “intend”, “estimate”, “continue”, “plan” or other similar words. The statements are based on the assumptions and beliefs of CKP’s management in light of the information currently available to CKP. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this presentation is, or should be relied on as a promise or representation of CKP as to the future.

2

Agenda

1. Business Overview

2. Financial Highlights

3. Looking Forward

3

Corporate Structure

(1) Shareholdingpercentageas of 29 June 2018; (2) Total paid-up shares = 7,370,000,000 shares

Hydro – 1,900 MW Cogeneration – 238 MW Solar – 22 MW

56%

75%

37.5% 65% 100%

30%

30%615 MW

1,285 MW

8 MW

8 MW

6 MW

SouthEast Asia Energy Company Limited (SEAN)

Nam Ngum 2 Power Company Limited (NN2)

Xayaburi Power Company Limited (XPCL)

BangkhenchaiCompany Limited (BKC)

Chiangrai Solar Company Limited (CRS)

Nakorn Ratchasima Solar Company Limited (NRS)

Bangpa-in Cogeneration Company Limited (BIC)

238 MW

Bangpa-in Cogeneration Phase 1 (BIC1)

Bangpa-in Cogeneration Phase 2 (BIC2)

118 MW 120 MW

Bangkok Expresswayand Metro PublicCompany Limited (BEM)

TTW Public CompanyLimited (TTW)

CH. Karnchang PublicCompany Limited (CK) Public

CK Power Public Company Limited (CKP)(2)

27.41%(1)

19.34%(1) 25.31%(1)

27.94%(1)

29.98%(1) 19.40%(1)

19.29%(1)

4

CKP focuses on investing in power generation and distribution assets for CK Group, which currently holds 72% of CKP.

CK Power Milestones

Under CK Power’s UmbrellaUnder CK Group’s Supervision

Since 2006, before the establishment of CKP in 2011, CK Group has already started developing multiple projects. These projects, along with platform of knowhow and expertise, were subsequently consolidated under CKP.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

NN2 started construction

NN2 IOD

NN2 COD

BIC1 started construction

Group restructuring, transferring NN2, BIC, BKC, NRS, CRS under CKP

NRS COD

BKC COD

XPCL started construction

BIC1 CODCRS COD

CKP listed on SET

BIC2 started construction

CKP acquired 30% in XPCL

BIC2 COD

2018 2019

CKP’s BOD approved acquisition of 7.5% in XPCL

XPCL SCOD

CKP established

5

NN2’s Construction Period

XPCL’s Construction Period

BIC1 BIC2

BKC

6

Portfolio OverviewCKP has diverse portfolio of 6 operating and 1 under-construction power plants with the majority of installed capacity concentrated in hydroelectric type of power generation.

Hydro – 1,900 MW Cogeneration – 238 MW Solar – 22 MW

NN2HPPXayaburiHPP

BIC 1 BIC 2 BKC CRS NRS

Operation Construction Operation Operation

Jan 2013

42%(1)

615

258

Oct 2019

37.5%

1,285

482

Jun 2013

65%

118

76

Jun 2017

65%

120

78

Aug 2012

100%

8

8

Jan 2013

30%

8

2

Mar 2012

30%

6

2

Operation

Total Installed MW Capacity = 2,160 MW

Total Equity MW Capacity = 907 MW

Operation Operation

COD / SCOD

CKP’s shares

Capacity MW

Equity MW

(1) CKP owns 56% in SEAN, which holds 75% in NN2HPP

Projects’ InformationNAM NGUM 2 HYDROELECTRIC POWER PROJECT (NN2HPP) XAYABURI HYDROELECTRIC POWER PROJECT (XAYABURI HPP)

Type : Hydroelectric Power Project (Storage Dam)

IOD(1) : March 2011

COD(2) : January 2013

Concession Period : 25 years from COD with the GOL(3)

Installed Capacity : 615 MW

Power PurchaseAgreement

: • 615 MW with EGAT• 25 years from COD with EGAT• Take or Pay

Power Generation : • Installed Capacity 615 MW (3x205 MW)• Annual Supply Target 2,310 GWh plus

Excess Energyo PE 2,218 GWh per yearo SE 92 GWh per year

Shareholders : • SEAN• EdL-Gen(4)

75.0%25.0%

Shareholders of SEAN

: • CK Power• RATCH(5)

• Others

56.0%33.0%11.0%

(1) Initial Operation Date; (2) Commercial Operation Date; (3) Government of Lao PDR; (4) EdL Generation Public Company Limited; (5) Ratchaburi Electricity Generating Holding Public Company Limited

Type : Hydroelectric Power Project (Run-of-River)

SCOD(6) : October 2019

Concession Period : 31 years from COD

Annual Energy Production

: 7,589 GWh

Installed Capacity : 1,285 MW


: • Turbines 7x175 MW = 1,225 MW with EGAT

• Turbine 1x60 MW = 60 MW with EdL

Average Monthly Inflow

: 3,890 cubic meters per second

Maximum Operating Level

: +275 m.asl.

Shareholders : • CK Power• Natee Synergy• EdL• EGCO(7)

• PT (Sole)

37.5%25.0%20.0%12.5%5.0%

(6) Schedule Commercial Operation Date; (7) Electricity Generating Public Company Limited

7

Projects’ Information

BANGPA-IN COGENERATION POWER PROJECT PHASE 1 (BIC1) BANGPA-IN COGENERATION POWER PROJECT PHASE 2 (BIC2)

Type : Gas-fired Cogeneration

COD : June 2013

BOI(1) Privilege : Tax Privilege


: • 90 MW with EGAT (minimum Take or Pay with gas price pass-through mechanism)

• 25 years from COD with EGAT• Selling the rest of electricity and steam to

industrial estate users

Installed Capacity : • 118 MW of electricity• 20 tons per hour of steam

Shareholders : • CK Power• GPSC(2)

• Others

65.0%25.0%10.0%

(1) The Board of Investment of Thailand; (2) Global Power Synergy Public Company Limited (3) Excluding approximately 4 MW of additional electricity capacity converted from steam production capacity

Type : Gas-fired Cogeneration

COD : June 2017

BOI Privilege : Tax Privilege


: • 90 MW with EGAT (minimum Take or Pay with gas price pass-through mechanism)

• 25 years from COD with EGAT• Selling the rest of electricity to industrial

estate users

Installed Capacity : • 120(3) MW of electricity

Shareholders : • CK Power• GPSC• Others

65.0%25.0%10.0%

8

Projects’ Information

BANGKHENCHAI SOLAR (BKC) NAKORN RATCHASIMA SOLAR (NRS)

Type : Thin Film Solar Power Plant

COD : August 2012

BOI(1) Privilege : Tax Privilege (8 years from January 2012)


: • Provincial Electricity Authority (PEA)• 5 years from COD with automatic renewal• Adder: 8 Baht/kWh for 10 years from COD


Shareholders : CK Power 100.0%

(1) The Board of Investment of Thailand

Type : Thin Film Solar Power Plant

COD : March 2012




Shareholders : • CK Power• Sonnedix Thailand One

30.0%70.0%

Type : Multi-crystalline Solar Power Plant

COD : February 2013




Shareholders : • CK Power• Sonnedix Thailand Two

30.0%70.0%

CHIANG RAI SOLAR (CRS)

9

Asset Locations

12%

88%

CK Power’s Total MW Capacity

2,160 MW(1)

1.

2.

3.

4.

5.

6.

Nam Ngum 2 Hydroelectric Power Project (NN2HPP)Vientiane, Lao PDR

Xayaburi Hydroelectric Power Project (Xayaburi HPP)Xayaburi, Lao PDR

Bangpa-in Cogeneration Power Project (BIC1, BIC2)Ayutthaya, Thailand

Bangkhenchai Solar Power PlantNakhon Ratchasima, Thailand

Nakhon Ratchasima Solar Power PlantNakhon Ratchasima, Thailand

Chiang Rai Solar Power PlantChiang Rai, Thailand

Lao PDR

Thailand

2

1

3

45

6

(1) Include under construction project 10

The majority of CKP’s current installed capacity is located in Lao PDR with the rest located in Thailand.

Agenda



3. Looking Forward

11

Hydro, 53%Cogen, 42%

Solar, 2%

Project Management, 2%

Others, 1%

CKP’s 1H18 Consolidated PerformanceConsolidated Financial Performance Unit: Bt mn

Revenue Breakdown

Key Highlights

5,6317,027 6,809 6,359 6,930

2,7353,809

REVENUE

EBITDA(1)

NPAT(1)

EBITDA Margin

NPAT Margin

+39.2% YoY

+18.9% YoY

+338.9% YoY

Unit: Bt mn

3,694 3,960 3,762 3,586 3,551

1,442 1,715

66%56% 55% 56%

51% 53%45%

(1) 2016 EBITDA and NPAT excluded Bt 378 mn one-time write-off of Nam Bak Hydroelectric Power Project’s development cost.

• Revenue and EBITDA improvements in 1H18 were mainly driven by COD of BIC2 in June 2017.

• 1H18 NPAT improved primarily from higher contribution from BIC2, increase in foreign exchange gain and improvement in financial cost.

12

219

472 412

214 159

-33

79

4%

7%6%

3%2%

-1%

2%

2013 2014 2015 2016 2017 1H17 1H18

Hydro, 35%

Cogen, 61%

Solar, 2%

Project Management, 1%

Others, 1%

1H18

3,8091H17

2,735

+9.0% YoY

-1.0% YoY

-25.7% YoY

13

Key Developments YTD41

201920182017

SCODOctober 201988.12%

December 2017

94.37%June 2018

4.54% 4.53%

4.20%4.13%

3.99%

2Q17 3Q17 4Q17 1Q18 2Q18

Cost of Debt

NN2 Bt 6 bndebentures issuance

NN2 Bt 3 bndebentures issuance

CKP Bt 6.5 bndebentures issuance

Company Rating 2

Issue Date : 30 March 2018

Issue Rating : A- / Stable (TRIS Rating)

Issue Size : Bt 3,000 mn

Interest Rate : Fixed rate 3.98% p.a.

Tenor : 12 years with early redemption

Interest Payment : Semi-Annual in March and September

Xayaburi HPP Construction Progress

5

Company Rating : A

Outlook : Stable

4

Nam Ngum 2’s Debenture 1/2018 1

CKP’s Equity MW in XPCL

CKP’s Debenture 1/2018

Issue Date : 18 June 2018

Issue Rating : A- / Stable (TRIS Rating)

Issue Size : Bt 6,500 mn

Interest Payment : Semi-Annual in June and December

DebentureInterest Rate

(% p.a.)Tenor

MaturityDate

Amount(Bt mn)

Tranche 1 2.56% 3 years 18 June 2021 4,000

Tranche 2* 4.06% 10 years 18 June 2028 2,500

Total Avg. = 3.14% 6,500

Additional 7.5% Shares in XPCL

3

* The Debentures may be redeemed at the option of the Issuer on the fifth anniversary of the Issue Date and at any Interest Payment Date thereafter.

386 482MW MW

NN2’s 1H18 Performance

Total Revenue(1) Monthly Electricity Sales and Water Inflow

Tariff Structure Electricity Sales Volume

Unit: Bt mn

Unit: GWh

Components 2013 2014 2015 2016 2017 1H17 1H18

PE 2,218 2,116 2,058 2,032 1,829 794 764

SE 92 7 41 71 25 - -

EE 151 88 - - - - -

TE 9 4 6 7 4 - 0

Account-PE - 102 94 - - - -

Account-SE - 9 - - - - -

Total 2,469 2,326 2,199 2,109 1,857 794 764

-7.2% YoY

(1) SEAN’s Consolidated Financial Statements; (2) Long-term exchange rate assumption is 1 US$ = 34 Baht

Year

PE Tariff SE Tariff EE Tariff

US$/kWh

Bt/kWh

Total Btequivalent(2)/

kWh

Bt/kWh

Bt/kWh

2011-2012(IOD Period)

0.02475 0.963 1.805 1.253 1.060

2013-2018(First 6 years from COD)

0.02475 0.965 1.807 1.255 1.062

2019 Onward 0.02668 1.041 1.948 1.353 1.145

4,115 3,976 3,883 3,8153,318

1,441 1,336

55 17 20 18 9

4 6

4,170 3,993 3,903 3,833 3,328

1,446 1,342

2013 2014 2015 2016 2017 1H17 1H18

Revenue from Sales of Electricity Other Income

14

• Lower electricity sold in 1Q18 was the main reason of the decline in revenue during 1H18.

Hydro35%

0

400

800

1,200

1,600

2,000

2,400

2,800

0

50

100

150

200

250

300

350

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity 2017 Electricity 2018 Estimated 2018

Inflow 2017 Inflow 2018

GWh MCMWater level as at end of 2Q18 = +352.74 m.asl.Total Inflow for 1H18 = 1,634 MCMTotal Inflow for 1H17 = 952 MCM

PE: 250SE: 40PE: 217

EE: 61

PE: 240SE: 53

-13.2% YoY

BIC’s 1H18 Performance

Total Revenue Monthly Electricity and Steam Production

Electricity and Steam Sale Volume

Unit: Bt mn

Unit: GWh/Tons

+101.9% YoY

2013 2014 2015 2016 2017 1H17 1H18

EGAT 332 647 636 617 959 313 649

IUs 39 114 123 136 158 71 117

Total (GWh) 370 761 759 753 1,117 384 766

Steam (Tons) 24,454 94,329 97,312 97,503 104,645 52,107 48,189

Avg. gas price (Bt/MMBTU)

321 325 300 240 235 236 244

1,310

2,8032,655

2,293

3,316

1,150

2,3211

116

2

6

2

5

1,311

2,8042,670

2,296

3,322

1,152

2,326

2013 2014 2015 2016 2017 1H17 1H18

Revenue from Sales of Electricity and Steam Other Income

15

• The increase in revenue in 1H18 was driven by COD of BIC2 at the end of 2Q17.

Cogen61%

0

2,000

4,000

6,000

8,000

10,000

12,000

0

20

40

60

80

100

120

140

160


Electricity 2017 Electricity 2018 Steam 2017 Steam 2018

GWh Tons

+44.7% YoY

BKC’s 1H18 Performance

Total Revenue Monthly Electricity ProductionUnit: Bt mn

Electricity Sales Volume Unit: GWh

2013 2014 2015 2016 2017 1H17 1H18

PEA (GWh) 14.01 14.08 13.98 13.36 12.71 6.68 6.13

Avg. Ft (Bt/kWh)

0.41 0.52 0.32 (0.33) (0.35) (0.38) (0.31)

160 163 158148

140

73 68

1 22

11

03

161 164160

149141

74 71

2013 2014 2015 2016 2017 1H17 1H18

Revenue from Sales of Electricity Other Income

-3.7% YoY

• The decline in 1H18 revenue was primarily due to the unfavorable weather condition.

• Ft remained negative during 1H18

16

Solar 2%

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4


Electricity 2017 Electricity 2018

GWh

-5.6% YoY

Consolidated Financial Position

(1) D/E calculated from Total Liabilities divided by Total Shareholders’ Equity; (2) Loan outstanding before transaction costs; (3) Included long-term loan in US$ of 69 mn 17

Financial Position

Leverage Ratios

Long-term Loan(2) Unit: Bt mnUnit: Bt mn

6,500

17,028

3,284

3,842 321

CKP NN2 BIC1 BIC2 BKC

(3)

(1)

30,974

Fixed-Float Rate Loan Proportion

USD-Baht Loan Proportion

Baht Loan, 81%

USD Loan, 19%

Fixed Rate, 37%

Float Rate, 63%

As at 4Q17

Fixed Rate, 52%

Float Rate, 48%

Baht Loan, 93%

USD Loan,

7%

As at 2Q18

As at 4Q17 As at 2Q18

25,414 26,10431,812 30,506 30,659 30,644

24,209 22,57421,908 28,030 28,428 30,540

859 649846

769 1,375 1,434

50,482 49,32754,567

59,305 60,462 62,617

2013 2014 2015 2016 2017 2Q18

Total Equity IBD Other Liabilities

0.99x 0.89x0.72x

0.94x 0.97x 1.04x

0.81x 0.72x0.53x

0.67x 0.74x 0.81x

2013 2014 2015 2016 2017 2Q18

D/E Ratio Net IBD/E Ratio

CKP’s Debentures Covenant: Net IBD/E not exceeding 3.00x

Agenda



3. Looking Forward

18

19

Long-term Strategic PlansThree key strategic goals are to enhance growth, improve profitability and ensure long-term sustainability of CKP.

Build One CKP Culture and Brand to Ensure On-going Success and Acceptance from Communities

Enhance Profit Margin to Provide Fair Returns for Shareholders and to Invest in Future Opportunities

Increase Generation Capacity with Enhanced Engineering Capability

Growth Profitability Sustainability

To be a Leading Power Business Company in Thailand and the ASEAN Region, with Efficient Operation

To Generate an Optimal, Stable and Fair Return for Shareholders

To be Responsible to the Environment, Community and All

Stakeholders

• Achieve 5,000 MW of Installed Capacity by 2025

• Achieve Financial Goals & Margin

• Ensure Top-level Shared Service

• Optimize Financial Structure

• Enhance Productivity

• Strengthen corporate governance

• Build One CKP Culture

• Enhance CSR functions

Engineering, Technology and Support Platforms & Network

People, Culture and Core Value

Looking Forward

20

Our 2025 target of 5,000 MW installed capacity will be supported by investment opportunities across ASEAN regions, particularly those opportunities in Thailand, Lao PDR and Myanmar.

2012

2018

2025875

2,166

5,000

2012 - 2014

• NN2(1) 615 MW

• BIC1(1) 118 MW

• BIC2(2) 120 MW

• BKC 8 MW

• CRS(1) 8 MW

• NRS 6 MW

2015-2017

• 30% acquisition of XPCL

• COD of BIC2 120 MW

2018

Key Activities

• 7.5% acquisition of XPCL from BEM

• Bt2.5bn new debentures

• Bt4.0bn debentures refinancing

• UOP of XPCL(3)

• New solar projects(3)

o 6 MW / Bt250mn

investment

Other Potential Projects

• New hydro 1,000-1,500 MW

2020 - 2025

Key Focuses

• Cross-border hydro projects in Lao PDR and Myanmar

• Thermal & renewable projects in Thailand

2019

• COD of XPCL 1,285 MW

• COD of solar 6 MW

(1) COD in 2013; (2) COD in 2017; (3) COD in 2019

Industry Outlook: Thailand

Thailand’s Power Development Plan 2015 (1) Renewable includes domestic hydro; (2) Company’s estimates

For Thailand, domestic renewable energy and imported hydro energy will be the two key drivers to feed Thailand’s electricity demand going forward.

PDP 2015: Changes in Thailand’s Planned Installed Capacity by Type (MW) PDP 2015: Target Fuel Mix (%)

16,193 13,950 12,876 12,876

46,586

60,792

37,612

21,419

2,243 1,074

33,710

14,206

9,543

37,612 37,612

12,876

70,335 70,335

46,586

60,792

2014 ThermalRetirement

SPPRetirement

HydroRetirement

NewThermal

NewRenewable(Domestic)

NewRenewable

(Import)

2036

-

Retirements (MW) Additions (MW)

Fuel Type 2014Mix

2036Mix

Estimated CAGR(2)

Imported Hydro 7% 15% - 20% 7% - 8%

Renewable(1) 8% 15% - 20% 6% - 7%

Clean Coal including Lignite

20% 20% - 25% 3% - 4%

Natural Gas 64% 30% - 40% -1% - 1%

Nuclear - 0% - 5% -

Diesel/Fuel Oil 1% - -100%

TOTAL 100% 100% 3%

21

Industry Outlook: Lao PDRLao PDR aims to be the Battery of Asia by Exporting Electricity to Neighboring Countries, including Thailand. Lao PDR signed MOU to sell electricity to Thailand for 9,000 MW.

• Lao PDR has 9,000 MW MOU to sell electricity to Thailand

• Excluding mainstream Mekong(1) river, there is about 26,500 MW of hydroelectric potential in the country

• Of which, 18,000 MW is technically exploitable

Status Project(2) TypeContracted Capacity

with Thailand (MW)

Major Shareholders(3)

In operation

Theun-Hinboun HPP Hydro 214•EdL-Gen (Lao)•Nordic Group (Norway)•GMS Power (Thailand)

Houay Ho HPP Hydro 126•GLOW (Thailand)•EdL (Lao)

Nam Theun 2 HPP Hydro 948•EDF (France)•EGCO (Thailand)•LHSE (Lao)

Nam Ngum 2 HPP Hydro 597•SEAN (Thailand)•EdL-Gen (Lao)

Theun-Hinboun HPP (Expansion)

Hydro 220•EdL-Gen (Lao)•Nordic Group (Norway)•GMS Power (Thailand)

Hongsa Lignite 1,473•BANPU (Thailand)•RATCH (Thailand)•LHSE (Lao)

Total 3,578

Under construction

Xe Pian Xe Namnoy(2019)

Hydro 354

•SK Engineering (Korea)•Korea Western Power (Korea)•RATCH (Thailand)•LHSE (Lao)

Nam Ngiep 1 (2019) Hydro 269•Kansai Electric (Japan)•EGAT International (Thailand)•LHSE (Lao)

Xayaburi HPP (2019) Hydro 1,220•CK Power (Thailand)•Natee Synergy (Thailand)•EdL (Lao)

Nam Thuen 1 (2022) Hydro 515•Ponesack Group (Lao)•EGCO (Thailand)

Total 2,358

GRAND TOTAL 5,936

(1) www.poweringprogress.org as of Nov, 2015; (2) www.eppo.go.th/index.php/th/graph-analysis/item/12101-nepc-prayut17-02-60#a8 as of Feb, 2017; (3) www.poweringprogress.org as of Jul, 2014 22

Industry Outlook: Lao PDR

www.poweringprogress.org as of November 2015 and Market data

Lao PDR’s section of the Mekong River has potential for several large site hydro power plant projects with XPCL being the first project on this river section.

3

9

12

4

5 6

7

8

10

11

ProjectInstalled Capacity (MW)

Construction Planned

1. Pak Beng 912

2. Luang Prabang 1,410

3. Xayaburi HPP 1,285

4. Pak Lay 1,320

5. Sanakham 570

6. Pak Chom 1,079

7. Ban Khoum 1,872

8. Lat Sua 800

9. Don Sahong 360

10. Stung Treng 980

11. Sambor 460

Total 1,645 9,403

23

Industry Outlook: Myanmar

Ch

ind

win

Riv

er

Than

lwin

Rive

r

• Renewable energy reserves

o Hydro >100 GW

o Wind 365 TWh/year

o Solar 52,000 TWh/year

• MOU 1,500 MW with Thailand

State / RegionPotential Hydro Sites

Capacity (MW)10 – 50 MW >50 MW

Kachin State 5 14 18,744.5

Kayah State 2 3 954.0

Kayin State 1 8 7,064.0

Sagaing Region 2 4 2,830.0

Taninthayi Region 5 1 711.0

Bago Region 4 4 538.0

Magway Region 2 3 359.0

Mandalay Region 3 6 1,555.0

Mon State 1 1 290.0

Rakhine State 3 3 764.5

Shan States• East• South• North

13-

355

719.87,569.54,000.0

>10 MW 32 60 46,099.3

<10 MW 210 231.3

Total 302 46,330.6

Ministry of Electric Power, Myanmar as of August 2016

Myanmar also has Significant Untapped & Diverse Types of Renewable Energy Potentials.

24

Contact Information

Thank You

Investor Relations Department

+66 (0) 2 691 9720 # 2035

[email protected]

www.ckpower.co.th25

201808 ckp company presentation 2q2018

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